Intermediate-Term Traders Report
It seems like downgrades by analysts hit many
market participants at the worst possible moment. Let me give you an example. On
Thursday, Deutsche Bank lowered the rating of ExxonMobil (XOM) to Hold from Buy
based on peaking oil prices. Look at the daily chart below. XOM recorded a new
high only two days before the downgrade.
Many investors love to buy new high stocks, but is it right strategy? If you
want to find out the answer, I recommend you to read a new book by Larry
Connors:
“How Markets Really Work”. It will surprise you.
Notable stocks of the week:
eBay Inc (EBAY): It looks like the stock is forming a double top. Notice,
the RSI is negatively diverging.
UTStarcom (UTSI): The stock has shaped hammer, and it may be bottoming
out.
Economic Calendar:Â Â Â Â Â Â Â Â
| Date | Time (ET) | Release | For | Consensus |
| Sep 27 | 10:00 | New Home Sales | Aug | 1150K |
| Sep 28 | 10:00 | Consumer Confidence | Sep | 100.0 |
| Sep 29 | 08:30 | GDP | Q2 | +2.8% |
| Sep 30 | 08:30 | Personal Income | Aug | +0.4% |
| Sep 30 | 08:30 | Personal Spending | Aug | +0.1% |
| Sep 30 | 08:30 | Initial Claims | 9/25 | N/A |
| Sep 30 | 10:00 | Help-Wanted Index | Aug | 37 |
| Sep 30 | 10:00 | Chicago PMI | Sep | 58.0 |
| Oct 01 | Auto Sales | Sep | 5.1M | |
| Oct 01 | Truck Sales | Sep | 8.1M | |
| Oct 01 | 09:45 | Michigan Sentiment | Sep | 96.5 |
| Oct 01 | 10:00 | Construction Spending |
Aug | +0.3% |
| Oct 01 | 10:00 | ISM Index | Sep | 58.3 |
Best performing
industries of the week: Oil Drilling, Equipment & Services +4.49%,
Tires +4.45%, Water Utilities +4.22%, Energy +3.90%
Worst performing industries of the week:
Semiconductors -7.15%, Airlines -2.45%, Communications Technology -2.23%
Good night and have a nice weekend.
If you have questions, feel free to mail them to me.